Tractor Supply Drops 50% as $165 Billion Pet Market Loses Pandemic Momentum

1 articles · Updated · Forbes · May 29

Tractor Supply shares have fallen about 50% since last August, while Chewy and Petco also sank as investors reassessed a pet-supplies boom that is now flattening.
NielsenIQ said pet owners are increasingly price-, time- and information-fatigued, pushing them toward cheaper commodity products as household costs rise and pandemic-era pets age into expensive veterinary care.
Chewy grew revenue about 145% in five years to nearly $12 billion, yet its market value is now roughly 25% of its peak; Petco trades at about 10% of its 2021 high.
The shift is hitting both store-heavy and online models: Tractor Supply's roughly 2,400-store footprint has been a drag against e-commerce rivals, while Chewy's subscription model has not shielded it from the slowdown.
U.S. pet-product spending still climbed from $96 billion in 2020 toward a projected $165 billion in 2026, but Walmart's new Pet Care Unleashed centers add another competitive threat as growth cools.

With Walmart and private labels attacking, how can pet retail giants like Chewy escape the shrinking middle market?

As vet bills skyrocket, is the 'pet humanization' trend pushing American families toward a financial breaking point?